Successful medical treatment requires some of the most sensitive data in the world to be gathered and crunched on a continual basis. Health Catalyst has taken on that challenge, aiming to help medical professionals improve treatment outcomes while keeping finances in check and operations efficient.
That focus has helped Health Catalyst attract another $100 million in funding–$85 million in debt and $15 million in equity–and reach a valuation of just over $1 billion. The round was led by OrbiMed Advisors, with participation from existing investors Sequoia Capital, Norwest Venture Partners, and others. The company has raised a known total of $392 million (inclusive of debt and private equity).
After investing in Health Catalyst during its early stages, Dan Burton joined as its CEO in 2011. He told Crunchbase News that the founders, Burton’s brother Tom Burton and Steven Barlow, started Health Catalyst after building a data analytics software for Intermountain Healthcare.
Now the company’s database software is used by more than 115 health systems, clinics, and academic medical centers, according to Burton. The Health Catalyst product operates across a diverse range of hospital needs, including “clinical, financial, and operational,” said Burton. Burton also explained that its consultative services are supported by AI-driven analysis of its data asset which includes data from more than 100 million patients.
Burton said that one of the most meaningful clinical improvements that the company has been involved with is the treatment of sepsis, which he said causes 250,000 deaths every year.
“So much of what depends on success in the treatment of sepsis is identifying [it] correctly as soon as possible, and then within three hours and within six hours, bundling together the right treatment protocols and ensuring compliance,” Burton explained. “We have a governance committee meeting in a dashboard where we track the number of lives that were actually saved as a result of compliance with the early indicators.”
Burton said the company has contributed to “thousands of injuries prevented and lives positively impacted through treatment algorithms and data analytics.”
Last year, Health Catalyst acquired “health information exchange” company Medicity from Aetna, which nearly doubled its client base. Further, Burton told Crunchbase News that the company ended with over $140 million of annual recurring revenue under contract and over $110 million of GAAP revenue.
With the funding, the company, which is currently a team of 750, plans to invest in its data platform and hire more talent for its clinical, financial, and operational consultative teams.
Finally, this is another point for Utah, an area that saw Pluralsight’s and Domo’s IPO, SAP’s acquisition of Qualtrics, and a number of funding rounds into startups. Burton, who is on the board of Silicon Slopes, an organization in support of Utah’s startup community, believes the state of Utah is “poised to play” an “outsized role” both in tech and healthcare.
“We’re able to tap into a great talent pool of healthcare domain experts and tech domain experts, both from the university setting as well as from all these other great tech companies that exist in Utah.”
Illustration Credit: Li-Anne Dias